Authority: Supreme Court of India, Civil Appellate Jurisdiction

Order Date: 27 October 2026

Case Overview

  • Parties: Union Bank of India (Appellant) vs. Arrow Business Development Consultants Pvt Ltd & Ors. (Respondent)
  • Nature of Proceeding: Civil appeals under Special Leave Petition (C) Nos. 2336/2026 and 3677/2026 against the High Court of Judicature at Bombay’s judgment and order dated 10 December 2025 in Writ Petition No. 11132 of 2025.
  • Background:
  • An auction of a secured asset was conducted on 30 May 2025 under the SARFAESI Act; Arrow Business Development Consultants Pvt Ltd was declared the successful bidder and the sale was confirmed on the same day.
  • The sale certificate was issued on 20 June 2025.
  • A petition under Section 94 of the Insolvency and Bankruptcy Code (IBC) was filed before the Adjudicating Authority (AA) on 9 June 2025, remained pending without a number, and the bank proceeded to issue the sale certificate.
  • The AA issued notices on 7 August 2025 and eventually dismissed the Section 94 petition on 2 June 2026.
  • High Court’s Reasoning (10‑12‑2025): The High Court held that the interim moratorium imposed under Section 96 of the IBC on 9 June 2025 stayed all proceedings, rendering the transfer of ownership incomplete and denying the purchaser possession.
  • Supreme Court Observations:
  • The Section 94 petition’s dismissal on 2 June 2026 does not affect the conduct or conclusion of the auction dated 30 May 2025.
  • The issuance of the sale certificate on 20 June 2025 validates the transfer of ownership, and there is no impediment to granting possession to the auction purchaser.
  • The appeals are allowed, setting aside the High Court’s judgment.
  • A direction is issued to Union Bank of India to hand over possession of the auctioned property to Arrow Business Development Consultants Pvt Ltd pursuant to the sale certificate dated 20‑06‑2025.
  • The respondents have filed an appeal before the NCLAT against the AA’s order dated 2 June 2026; that appeal will be decided on its own merits, independent of these civil appeals.
  • All pending interlocutory applications, if any, are disposed of.

Final Outcome

  • The Supreme Court allowed the civil appeals, set aside the High Court’s order dated 10‑12‑2025, and directed Union Bank of India to transfer possession of the auctioned property to Arrow Business Development Consultants Pvt Ltd as per the sale certificate dated 20‑06‑2025.
  • The order also notes that the respondents’ separate appeal before the NCLAT will proceed independently.

Topics: Insolvency, Banking